Renting Your Land for Battery Storage
A growing number of landowners seem interested in renting their land for battery storage projects. For those looking to do so, an important question to answer is:
How much can I expect to receive per acre for battery storage?
Obviously, there’s no one-size-fits-all answer. As with other types of renewable energy projects, actual rent payments vary depending on a number of factors. Let’s take a closer look.
Variables that Impact Rent Payments for Battery Storage
At New Era Land Services, we work closely with project developers and landowners to make deals happen. In our experience, the following factors influence how much rent a landowner should expect for battery storage.
Proximity to Substation(s): Battery storage facilities play an important role in storing the grid’s excess energy. Not surprisingly, property located near existing substations is often well suited for transmitting energy to and from a battery storage site.
Topography: Forested terrain in a flood plain is certainly not ideal for battery storage. Rather, project developers typically prefer flat ground that has already been cleared from trees and impediments.
Nearby Industry & Economic Conditions: Data centers, cryptocurrency mining facilities, and large-scale manufacturers rely on a stable energy supply. Land with nearby industry and economic growth may be a viable site for battery storage.
Access to Natural Resources: Local governments sometimes require battery storage facilities to be situated near water reservoirs to protect against the risk of fire.
Land Condition: Farmland that perennially produces bumper crops is usually in higher demand than reclaimed land with minimal commercial value. All things being equal, rent prices for prized farmland should at least meet or exceed harvest income expectations.
Adjacent Solar or Wind Projects: Wind turbines turn when the wind is blowing. Solar panels collect energy when the sun is shining. These events may not always coincide with peak energy consumption, leading to excessive energy supply. Therefore, it makes sense to locate a battery storage facility near existing renewable projects.
Here’s a Ballpark Number for Battery Storage
Given the previously mentioned factors, a typical starting point for a battery storage land lease is about $1,000 per acre. Keep in mind, however, that battery storage projects use substantially less land (40 acres or less) compared to utility-scale solar projects. In addition, battery storage projects leave a lasting impact on the ground itself. Whereas solar projects allow soil to rest, and, in some cases, enable new opportunities like agrivoltaics, battery storage transforms the land in a more permanent way. Landowners should carefully weigh these factors in their decision-making.
Questions? Contact us to check for battery storage projects in your area or discuss development opportunities.